Harper cautious on growth, says basics strong

OTTAWA (Reuters) - Canadians should not be complacent about
economic growth, particularly as financial market volatility
may last for some time, Prime Minister Stephen Harper said on
Friday.

Harper said the economy's fundamentals are strong, with
unemployment at its lowest in three decades, federal taxes
heading to their lowest level in four decades, debt falling,
interest and inflation rates low, and household income rising
strongly.

"But we cannot be complacent about the continued growth of
our economy. Recent volatility in financial markets, mostly
emanating from the United States, may be with us for some time
to come," he said in a speech in Ottawa, marking a little more
than two years since the minority Conservative government was
elected.

"Good jobs are threatened in some of our traditional
industries. And cost pressures in some parts of the country are
straining the budgets of working families. We're aware of these
challenges," the prepared text of his speech said.

The prime minister said the government had acted and would
continue to act to help regions and sectors in trouble, such as
manufacturing, forestry, fishing and tourism. He said the
government would also continue to strengthen agriculture.

Harper said the opposition would like to make Canadians
think they can spend their way out of any slowdown, but what
was needed in times of economic uncertainty was "strong,
certain, steady leadership."

"My friends, their reckless spending would, in one budget,
push the country back into deficit, adding to the federal debt
and putting upward pressure on interest rates."